<html> <head> <title>Rule 06:01:04:05 Individual mortgage loans serving as collateral.</title> <META NAME="Keywords" Content="Administrative Rules 06:01:04:05"> <META NAME="Description" Content="Administrative Rules 06:01:04:05 Individual mortgage loans serving as collateral."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>6:01:04:05.&nbsp;&nbsp;Individual mortgage loans serving as collateral.</b> The individual mortgage loans serving as collateral for an issue of securities shall meet either of the following requirements:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Be insured by the federal housing administration or guaranteed by the veterans' administration; or</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;If not insured or guaranteed under subdivision (1) of this section, have a total loan-to-value ratio of 90 percent or less with a minimum of 20 percent mortgage insurance coverage issued by a private mortgage insurer. Up to 20 percent of the par value of the mortgage loans serving as collateral may be made up of mortgage loans having a loan-to-value ratio of up to 95 percent with a minimum of 25 percent mortgage insurance coverage issued by a private mortgage insurer. Insurance on all such mortgage loans shall be issued by a private mortgage insurer which meets the following requirements:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;Is approved by the Federal Home Loan Mortgage Corporation;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;Has been engaged in the mortgage insurance business for at least 3 years; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;Is authorized under SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-6-1">58-6-1</A> to issue mortgage insurance in South Dakota.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 9 SDR 53, effective November 3, 1982.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-5-28">4-5-28.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-5-28">4-5-28.</A></p> </div> </body> </html>